IndusInd Bank Q4 profit dips 62%; IL&FS exposure takes toll
IndusInd Bank on Wednesday reported 62 per cent fall in net profit at Rs 360 crore for the March quarter 2018-19 due to higher provisioning for loans extended to IL&FS.
Its profit in the year-ago period stood at Rs 953 crore.
The private sector lender has a total exposure of Rs 3,004 crore to IL&FS Group, of which Rs 2,000 crore is to the holding company and Rs 1,004 crore to operating companies/ special purpose vehicles.
The entire exposure to IL&FS was classified as non performing asset (NPA) in the fourth quarter.
“While the bank witnessed robust growth in its topline as well as in operating profits, aggressive one time provisioning for IL&FS depressed the bottom line,” the bank’s MD and CEO Romesh Sobti told reporters.
